Plus500 Review: South Africa Edition (2024) (2024)

Plus500 Overall Rating

While the lack of different account types and educational materials may deter some traders, Plus500 makes up for this with a highly secure trading environment, supported by regulation from several leading authorities. It offers competitive trading conditions, along with a low minimum deposit that makes trading accessible to more people. The proprietary trading platform, while lacking customization options found in third-party platforms like MT4/MT5, is praised for its simple design and functionality. FxScouts rates Plus500 4.09 out of 5.

Is Plus500 regulated?

One of the best-regulated CFD providers, Plus500 maintains regulation from no less than eight authorities, and is listed on the London Stock Exchange,

ASIC Regulation: South Africans will be onboarded through Plus500AU Pty Ltd, regulated by the Australian Securities and Investments Commission (ASIC). Although it is an Authorised Financial Services Provider (FSP: 47546), it is still awaiting its ODP licence from the South African regulator – the Financial Sector Conduct Authority (FSCA). As a result, ASIC will oversee Plus500’s operations in South Africa:

Features: Although South Africans may be disappointed by the lack of FSCA oversight, ASIC has a good reputation when it comes to regulating Forex brokers. It ensures that Plus500 segregates client money from its operating capital and that Plus500 offers all traders negative balance protection so that they cannot lose more than their initial deposit. Additionally, in early 2021, ASIC tightened its restrictions on CFD trading to protect traders better. Plus500 clients in South Africa will have a leverage limit of 30:1 for Forex trading.

Plus500 is also listed on the London Stock Exchange.

Company Details:

Financial Instruments

We found that Plus500 offers a wider range of assets compared to other similar CFD providers, including over 70 currency pairs.

See below for Plus500’s range of instruments and corresponding leverage:

• Forex: Plus500 has over 70 currency pairs available for trading which is a much broader range than is offered at other CFD providers, including majors (EUR/USD, GBP/USD, and USD/JPY) and minors (NZD/CAD, EUR/JPY, and USD/ZAR), and exotics.
• Share CFDs: Plus500 offers 1900 share CFDs, which is a wider range than most other CFD providers. The selection available includes some of the major US companies, such as Facebook, Apple, Microsoft, and Alphabet, among others.
• Options: Plus500 offers an extensive range of options compared to other CFD providers, with 504 options available for trading. Maximum leverage on all futures is up to 5:1.
• ETFs: Plus500 offers trading on 95 ETFs, which is a broader range than is available at other CFD providers.
• Indices: Average compared to other CFD providers, there are 32 indices available for trading at Plus500. The most popular indices are those that combine the shares of some of the largest and globally acknowledged companies.
• Commodities: Plus500 offers trading on 25 commodities, including metals such as gold and silver, energies such as natural gas and oil, and softs such as cotton and wheat. Most CFD providers only offer trading on between 5 – 10 commodities, so this is an impressive offering.
• Cryptocurrencies: Plus500 offers 19 cryptocurrencies for trading, which is a wider range than is available at other CFD providers.

Overall, we found the range and depth of assets available to trade impressive and it excels in its Forex offering.

Plus500’s Accounts and Trading Fees

Plus500’s trading conditions are broadly similar to other CFD providers, with a single account type, but tight spreads.

Trading Fees: Plus500’s account has a minimum deposit requirement of only 1500 ZAR, making it accessible to most traders. Although the CFD trading account is commission-free, spreads start at only 0.8 pips* on the EUR/USD, which is tighter than other similar CFD providers. Most other good CFD providers have an average spread of 0.9 pips (EUR/USD).

*spreads correct as of 09:00 GMT on 20/06/2022.

Plus500’s Account Trading Costs:

Spreads on other Major Forex Pairs

Plus500 also offers trading on other major pairs, including the GBP/USD, USD/JPY, AUD/USD, and USD/CHF. As with the EUR/USD above, the costs* in the table below are based on the trading fees of one lot (100 000 USD), including the spread and commission:

As you can see, trading costs are close to the industry average on most major pairs.

*Note that these costs are correct as of 09:00 GMT, 21/06/2022.

Overall, we found that Plus500 offers a single trading account with competitive trading costs and a reasonable minimum deposit requirement.

Plus500’s Deposits & Withdrawals

We found that Plus500 charges low deposit and withdrawal fees compared to other CFD providers, but that its payment methods are limited.

A well-regulated CFD provider, Plus500 ensures that all Anti-Money Laundering rules and regulations are followed. As such, all non-profit funds are returned to the original deposit source.

Trading Account Currencies: When we opened our account, we noticed that the Plus500 client portal allows you to choose from a large range of base currencies, including USD, GBP, EUR, CHF, AUD, JPY, PLN, HUF, CZK, CAD, TRY, SEK, NOK, ZAR, and SGD. Because we were depositing in ZAR from a ZAR bank account, we weren’t charged any currency conversion fees. Plus500’s currency conversion Fee is up to 0.7% of the trade’s realised net profit and loss, which is higher than the currency conversion fees charged by other CFD providers.

Deposits and Withdrawals: We found that deposits and withdrawals can be made securely at Plus500 using major debit cards and credit cards (including Visa and MasterCard), bank wire transfer, and Skrill. See below for details on the payment methods:

Although deposits and withdrawals are generally commission-free, Plus500 requires a minimum withdrawal amount of 100 USD for Skrill and credit cards; and 500 USD for bank transfers. Withdrawals below this amount incur a fee of 10 USD, which is relatively expensive.

We tested deposits via credit card and found that our payment was processed almost instantly, but it took three days for our withdrawal to arrive in our account, which is longer than average.

Overall, we were disappointed in the limited variety of payment methods and that Plus500’s processing times are slower than other CFD providers. Additionally, while no commissions are charged on deposits, withdrawals below certain minimum amounts will incur a fee of 10 USD.

Plus500’s Mobile Trading Platform

We found that, unlike most other CFD providers, Plus500 only provides its own mobile trading platform, which cannot be customised and does not allow for algorithmic trading, but the platform has a sleek design and is easy to use.

We rigorously tested the trading platform. See below for more details:

Easy to Use: We found that the platform offers a streamlined trading experience, appealing to traders who want to avoid the complexity of third-party platforms. The platform looks fantastic, is very easy to use, and has a solid reputation in the trading community.

Platform Features: As you can see below, the simple interface allows users to create watchlists (or favourites), analyze charts, and place and monitor trades. Additionally, technical analysis charts offer more than 100 technical indicators available in multiple timeframes:

Alert: You can also set automated price and percentage alerts that will inform you when a certain price has been reached or when a price has increased or decreased by a chosen percentage. Another great feature of the platform is that you can view trader sentiment and set alerts to inform you when a predefined percentage of traders are buying or selling an instrument. All of these alerts can also be sent via email and SMS:

Demo Account

The demo account allows traders to practice trading and get used to the Plus500 platform before depositing real money. The Plus500 platform is different from that of other CFD providers, so we advise that new clients take the time to get comfortable with the platform before committing to a deposit. While we enjoyed the clean design of the Plus500 platform, some traders may prefer a more traditional layout. Demo accounts do not expire and are loaded with virtual funds that can be topped up by request.

Overall, we think that the education section could be improved with a greater variety of materials in addition to providing sections for more experienced traders. Traders would also benefit greatly from being able to attend webinars on CFD trading basics and risk management.

Education Comparison:

Customer Support

We found Plus500’s customer support excellent compared to other CFD providers – with support available 24/7 on live chat and via email.

Plus500 offers 24/7 customer support via email, online chat, and WhatsApp messages in 31 different languages. This is a much higher level of service than we usually find at other CFD providers. The only way we think customer support could be improved is by offering phone support for more complex queries and troubleshooting.

For the purposes of the review, we tested the live chat service. We found the live chat agents were knowledgeable and responsive. They also provided links and extra reading material where appropriate.

Regulation

We consider Plus500 a regulated broker to trade with. It maintains regulation from a number of top-tier regulators, including the FCA of the UK, ASIC of Australia, and the MAS of Singapore. It also maintains regulation from the FSA of Seychelles, through which global traders are onboarded.

Plus500 was founded in 2008 and has grown into one of the largest online CFD providers in the world – not only is the company publicly traded on the London Stock Exchange, meaning an additional level of scrutiny, but eight national authorities also regulate its subsidiaries:

• Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA), licence number 509909.
• Plus500CY Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), licence number 250/14.
• Plus500AU Pty Ltd is authorised and regulated by the Australian Securities Investment Commission (ASIC), afsl # 417727. The Company is licenced by ASIC (AFSL #417727) to offer CFDs to Australian residents and the FMA (FSP #486026) to offer CFDs to New Zealand residents. Plus500AU Pty Ltd is an Authorised Financial Services Provider #47546 in South Africa.
• The Financial Markets Authority (FMA) New Zealand, licence number 486026.
• The Financial Sector Commission Authority (FSCA) South Africa, licence number 47546.
• Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products, license number CMS100648-1.
• Plus500IL Ltd is registered in Israel and is licenced to operate a trading platform.
• Plus500SEY is registered and authorised by the Seychelles Financial Services Authority, FSA License Number SD039, Registration Number 8426415-1.

Awards

Plus500 does not highlight any industry recognition it has received, but it has won numerous awards for its services over the years.

Overall, considering the strict regulatory oversight, the long track history, and the fact that it is listed on a public stock exchange, we deem Plus500 a trustworthy CFD provider.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process. Central to that process is the evaluation of the reliability of the CFD provider, the platform offering of the CFD provider, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the CFD provider.

Plus500 Risk Statement

79% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you can afford to take the high risk of losing your money.

Overview

Plus500 is a leading brand in the CFD trading industry and has a loyal following of traders. We found that it has low trading costs, a reasonable minimum deposit requirement, and a wide range of tradable assets.

Although some traders may be disappointed that trading is only offered on Plus500’s proprietary platform, the platform has a sleek, intuitive design, and is integrated with some excellent risk management tools.

We noted that the market analysis and educational materials are limited compared to other CFD providers, forcing traders to self-educate elsewhere, but customer support is available 24/7.

Editorial Team